FTSE 100 down 0.8%

The FTSE 100 lost 0.8 per cent in early trading today (December 24th), exacerbated by thin volumes and the fact stock markets will only open for business for a half-day session.

Chris Bennett, senior trader at a binary betting firm, commented: "The Credit Grinch has stolen the Santa Rally this year.

"And with few traders at work on Christmas Eve, thin volumes are unlikely to help bring the wrapping off any financial bounce."

Among the losers were drug stocks, such as AstraZeneca, which shed 2.1 per cent following news that the US Food and Drug Administration has requested further information on its schizophrenia drug Seroquel.

Bank stocks failed to receive a festive boost with Lloyds TSB, HSBC, Barclays and HBOS shedding between 0.3 per cent and 1.5 per cent.

Heavyweight oil stocks also inflicted damage on the stock market, reports Reuters, with BP, Royal Dutch Shell and BG Group falling by between 1.1 per cent and 1.8 per cent.